Learning Objectives
By the end of this section, you will be able to:
- Explain the fundamentals and importance of global information systems
- Distinguish between global information systems and traditional information systems
- Describe the infrastructure of global information systems
The business world is a network of interconnected companies operating across various continents linked by technology. This technology supports communication and collaboration with other businesses and geographically dispersed teams. The smooth interchange of information is critical to global business operations. How is this accomplished? At the center of global information interchange lies a complex system known as a global information system, an intricate network of hardware, software, data, and telecommunications infrastructure that enables information collection, storage, management, processing, analysis, and dissemination worldwide. Global information systems are the backbone of international operations, allowing organizations to exchange information, communicate effectively, and collaborate. Global information systems enable companies to overcome geographical barriers and tap into new opportunities for growth and innovation through knowledge sharing.
As Figure 11.2 shows, a global information system manages and analyzes information across countries and regions to support worldwide operations and decision-making. You can think of a global information system as an information hub—similar to a library—collecting, storing, managing, processing, analyzing, and disseminating information. The global information system is continually updated, providing real-time insights across geographic boundaries.
A good example of a global information system is Tesla’s use of over-the-air (OTA) software updates. This system lets Tesla update its cars remotely, thereby improving performance, adding new features, and fixing problems without customers needing to go to a service center. The strategic impact of OTA updates is significant: they keep Tesla’s cars technologically advanced and continuously improve the customer experience, providing a key competitive advantage in the automotive industry. This system reduces costs associated with physical recalls and enhances the long-term value of Tesla vehicles, demonstrating how a global information system can facilitate cross-border collaboration and support sustainable growth in a complex global marketplace.2
You may come across a similar term, “geographic information system,” often abbreviated as “GIS,” but this type of system focuses on managing spatial or geographic data, including maps, satellite imagery, and location-based information. Geographic information systems can analyze terrain data for urban planning or track wildlife migration patterns, or support emergency response efforts. For example, during Hurricane Helene in 2024, emergency teams used geographic information systems to analyze flood risk zones, prioritize evacuations, and identify isolated communities.3 This real-time data helped responders prioritize evacuation orders and deploy rescue resources. There are many important applications of geographic information systems as a system themselves or as part of a global information system. A geographic information system can be a component of a global information system, but the latter may also include enterprise resource planning systems, global supply chain management systems, and customer relationship management systems that manage global operations. Many examples related to geographic information systems reinforce concepts that involve solving local problems, but the solutions can be applied to larger, more complex problems around the world.
Global information systems play a different role. While global information systems may still include geographic data, the main goal is to help individuals, organizations, and governments connect and collaborate across the globe. An example of a global information system that many of us experience is Google Ads. When you search for a product, such as running shoes, on Google, you might notice ads for different brands appearing at the top of the search results. These ads are targeted specifically to you using data from your search history, location, and online behavior, whether you’re in New York, Tokyo, or Paris. Google Ads allows businesses to reach potential customers like you across the globe with personalized marketing, increasing the chances that their ads are relevant, driving sales, and maximizing their return on investment.
The Role of Global Information Systems
Global information systems are essential components of modern society and play a critical role by enabling organizations to coordinate operational activities on a global scale. For instance, Netflix uses a global information system that leverages big data and machine learning algorithms to recommend movies and shows to users across different countries, based on their viewing history, preferences, and behaviors.4
One use of global information systems is to track the movement of raw materials across various continents, predict the path of a hurricane, or help you find the nearest shipping center. These systems are woven into society, shaping everything from global business efficiency to disaster response effectiveness. They also accelerate international expansion by providing organizations with the necessary infrastructure to enter new markets, adapt to diverse regulatory environments, and compete globally. For multinational corporations, global information systems streamline processes such as supply chain management, allowing for seamless coordination of production, distribution, and logistics operations across borders. In addition, global information systems support the standardization of business practices and workflows, ensuring consistency and efficiency across global operations. Global information systems are useful for breaking geographic barriers, facilitating global connectivity, and fostering global citizenship.
Global information systems can also allow companies to overcome geographical barriers by providing a platform for sharing knowledge and resources regardless of physical distance. This opens new opportunities by tapping into global talent—skilled professionals from around the world—which allows for collaboration, leveraging diverse skills, and exploring new markets.
A global information system enables individuals, organizations, and governments to connect and collaborate across vast distances. Through email, videoconferencing, social media, and other digital platforms, global information systems have transformed how people communicate and share information, transcending local barriers of time and location. For example, a medical team in Montreal can consult with a specialist about a patient located in a remote Nordic village using videoconferencing software.
Another benefit of a global information system is that it can promote global citizenship by increasing awareness of international issues and facilitating cross-cultural understanding. This is accomplished by providing access to information, educational resources, digital tools, online forums, or interactive platforms where individuals, organizations, and communities can actively engage in decision-making processes, share knowledge, collaborate on projects, and contribute to discussions.
In addition to international connections, global information systems can grow businesses by nurturing innovation and creativity, enhancing operational efficiency, and supporting informed decision making. Global information systems encourage innovation and creativity within organizations. Global teams can collaborate on projects, share ideas, and leverage diverse perspectives as they develop innovative solutions to complex problems. For example, cross-continental meetings where teams work together in real time to tackle specific challenges and prototype new ideas allow employees the opportunity to contribute ideas and refine concepts collaboratively.
Global information systems can also support informed decision-making: In crises like natural disasters or epidemics decision-makers need accurate, timely data to respond effectively. A global information system integrates and visualizes data from sources like weather patterns, population density, and resource availability. By providing clear, actionable insights, global information systems help decision-makers improve business operations, policy development, and strategic planning.
Finally, global information systems streamline business processes, improve workflow efficiency, and optimize resource allocation. Logistics companies—like FedEx, UPS, and DHL—can optimize delivery routes based on traffic conditions displayed through systems, saving time and fuel, leading to cost savings and improved customer service (Figure 11.3). Utility companies can pinpoint the source of outages by analyzing real-time data on power grids and infrastructure, leading to faster repairs and improved service.
Let’s look at global information systems in action by looking at Nike. Nike uses global information systems to manage its extensive global supply chain, which spans from factories in Vietnam to stores worldwide. Global information systems enable Nike to track raw materials, streamline production, and optimize delivery routes, ensuring timely and cost-effective operations. Beyond logistics, global information systems help Nike identify new market opportunities, such as expanding into South America, by analyzing data to tailor marketing strategies and product offerings. Global information systems help Nike manage inventory and track customer preferences across various regions. This integration supports Nike’s e-commerce platform by providing accurate inventory levels and efficient order fulfillment globally. Additionally, global information system data allow Nike to tailor online marketing strategies and product recommendations based on regional trends and consumer behavior, ensuring a personalized shopping experience and effective market expansion.5
Another example is the Real-Time Air Quality Index Visual Map that provides real-time information about the air quality and air pollution in different regions of the world.6 The map helps those traveling to make informed decisions concerning their destinations, especially if they have any form of respiratory disease.
Ethics in IS
Global Information Systems for Humanitarian Efforts
The United Nations (UN) uses global information systems to boost its humanitarian efforts around the world. One notable example is during the Syrian refugee crisis.7 As millions of Syrians fled their homes to escape conflict, the UN relied on geographic information systems to coordinate aid distribution, track refugee movements, and plan the establishment of refugee camps. These allowed UN agencies and humanitarian organizations to analyze satellite imagery to identify suitable locations for refugee camps, considering factors such as accessibility, terrain, and proximity to essential services like water sources and medical facilities. Working in conjunction, global information systems helped with the integration of various datasets, encompassing not only geographic data but also nonspatial information from diverse sources, such as demographic data, epidemiological data, health-care infrastructure, and disease transmission patterns from multiple regions worldwide. This data-driven approach helped foster international collaboration and cross-border coordination between UN agencies and other humanitarian organizations to optimize the placement of camps to ensure efficient delivery of aid and support to displaced populations.
How Global Information Systems Differ from Traditional Information Systems
Consider a logistics company with warehouses scattered across the globe. A traditional information system might track inventory levels within each warehouse but wouldn’t be able to show the bigger picture—the real-time location of shipments, customer preferences based on location, or potential bottlenecks in the supply chain. This is where a global information system comes into play.
Global information systems are designed to manage and handle the complexities of global operations. Unlike traditional information systems, which are typically limited to a specific geographic location or organizational boundary, global information systems excel at handling and managing data regardless of geographic location. Characteristics that set a global information system apart from a traditional information system (Figure 11.4) include its global reach, the types of data it works with, and its integration with other systems.
One of the key differences between a global information system and a traditional information system is their scope of operations. While a traditional information system is focused on supporting the internal operations of a single organization or a specific geographic region, a global information system is designed to facilitate communication, collaboration, and decision-making across multiple organizations and geographic boundaries. This allows users to see the entire operation across the globe, from bustling city centers to remote rural areas. In addition, a global information system is equipped with advanced features such as multilingual support, currency conversion, and internationalization capabilities to accommodate the diverse needs of organizations worldwide. A traditional information system is typically designed for internal data management within a single organization or a specific geographic region. An information system might track sales figures for all of a company’s stores, but it wouldn’t inherently know each store’s physical location or how sales figures relate to other factors like demographics or traffic patterns.
While both traditional information systems and global information systems manage data, they handle them in a fundamentally different way. A traditional information system typically deals with structured data, such as sales transactions or inventory levels, which are relatively straightforward to manage; they are organized and categorized in a predefined format. Imagine a customer database that includes columns for a customer’s name, address, phone number, and purchase history. Each piece of data occupies a specific slot, making it easy for the information system to store, retrieve, and analyze. However, a traditional information system struggles with the complexity of geographic data that come in a variety of formats. A global information system often deals with unstructured data, which do not have a predefined organization, or semi-structured data, which are somewhat organized but lack the fixed schema of a traditional database. Examples of unstructured and semi-structured data include social media feeds, sensor data (information collected by a device that detects and responds to a physical input, such as temperature), and satellite imagery. These types of data require more sophisticated processing techniques, such as data mining, natural language processing, and machine learning, to extract meaningful insights. Consider a utility company managing a network of power lines. A traditional information system might struggle to analyze outages based on location. However, since a global information system has the ability to model the network’s spatial layout, the company can pinpoint the outage zones and identify affected customers much faster. This specialized data structure empowers a global information system to unlock the full potential of location-based data for analysis and visualization.
Finally, a global information system is characterized by its ability to integrate and analyze data from multiple sources, including internal systems, external databases, and the internet, enabling a more complete picture to emerge. Sales trends can be analyzed alongside weather patterns, or delivery routes can be optimized based on traffic congestion in a specific area. This integration capability is essential for supporting global operations as it allows organizations to access and combine data from different sources to gain a comprehensive view of their operations and make informed decisions.
Facilitating Communication and Collaboration with Global Information Systems
A global information system facilitates communication and collaboration across different locations by transcending the barriers of distance, time zones, cultural differences, and language barriers. This transformative power of global information system empowers organizations to operate seamlessly on a global scale, a feat that was once considered nearly impossible.
Integration of Operations
A global information system enables organizations to integrate their operations across locations, facilitating centralized data management, streamlined processes, and operational consistency. For instance, a multinational corporation like Toyota leverages global information systems to integrate its manufacturing, distribution, and sales operations across the globe.8 This integration is essential for achieving economies of scale, reducing duplication of efforts, and optimizing resource utilization, which is the efficient and effective allocation and management of resources such as time, money, materials, or personnel to achieve desired objectives or outcomes. By harnessing global information system capabilities, Toyota is consistent in product quality and operational efficiency across its worldwide operations. This is imperative for business competitiveness and customer satisfaction, as well as for driving innovation and organizational agility.
Real-Time Communication
A global information system provides real-time communication tools such as email, instant messaging, and videoconferencing, allowing employees in different locations to collaborate and communicate effectively. Consider SpaceX’s international project team. Team members must communicate effectively, address technical challenges promptly, and ensure project milestones are met on time.9 Global information system-enabled videoconferencing and instant messaging tools allow real-time communication for coordinating activities and resolving issues quickly, enhancing project success. An added benefit is that this technology can help foster a sense of teamwork among geographically dispersed teams despite being separated by thousands of miles.
Access to Global Information
A global information system provides a wealth of global information including market trends, competitor analysis, regulatory requirements, and cultural insights. This information is essential for making informed decisions, identifying new opportunities, and mitigating risks associated with global operations.
Standardization of Processes
A global information system enables organizations to standardize processes and procedures across different locations, ensuring consistency in quality, compliance, and performance. This standardization is essential for maintaining brand reputation, meeting customer expectations, and achieving operational excellence. For instance, multinational banks leverage global information systems to standardize compliance procedures across branches worldwide, ensuring regulatory compliance and reducing operational risks.
Cost Reduction and Customer Satisfaction
A global information system can help reduce costs associated with global operations by enabling organizations to optimize their supply chain, reduce inventory levels, and minimize travel expenses. FedEx, for example, uses a global information system to reduce operating costs and enhance profitability while maintaining service quality. By analyzing transportation routes and warehouse locations, minimizing shipping distances, consolidating inventory, and optimizing resource allocation, FedEx can deliver expediently to its customers, and this customer-centric approach is essential for building loyalty and driving repeat business.10
While a global information system can lead to cost reductions for organizations with global operations, it is important to recognize that there may be higher costs initially due to the complexity of the system’s size and its scope of connectedness. While global information systems offer cost-saving opportunities in future years, organizations must carefully manage these complexities to ensure overall financial sustainability.
Improving Decision-Making Processes with Global Information Systems
Whether strategic, operational, or tactical, decisions influence every aspect of an organization’s performance, from resource allocation to market positioning. In today's dynamic and competitive business environment, the ability to make timely and informed decisions is essential for organizations to thrive and adapt to change. A global information system facilitates comprehensive analysis, providing decision-makers with a holistic view of the factors influencing their operations. For example, a retail chain may use a global information system to integrate sales data with demographic information, helping them make informed decisions about where to expand and how to increase their presence in the global market.
Visualization of Spatial Data
Visual representation is a powerful tool for understanding complex data and communicating insights effectively (see 8.2 Foundations of Business Intelligence and Analytics). Within a global information system, a geographic information system enables organizations to visualize spatial data through interactive maps, charts, and dashboards. The term spatial analysis refers to the process of examining patterns, trends, and relationships within geographic data to gain insights and make informed decisions about spatial phenomena. By using spatial analysis, decision-makers gain valuable insights, visualize complex information, and develop informed strategies. Imagine you have a map of your neighborhood with all the places where people have complained about noisy pet dogs. Spatial analysis would help you see if the complaints are clustered in certain areas or spread out. This way, you could find out if there’s a pattern, like if noisy dogs are more common near certain types of homes or parks, helping you decide where to focus your efforts to address the issue. Another example would be a city planning department using geographic information system maps to visualize population density, land-use patterns, and transportation networks to inform urban development strategies.
Scenario Models and Predictive Analysis
Anticipating future trends and outcomes is essential for proactive decision-making. A geographic information system allows organizations to assess the potential impacts of various strategies and courses of action by conducting predictive analysis, which is the use of data, specifically statistical algorithms, to help organizations identify patterns and make predictions that will enhance the operational results (see more about predictive analytics in 8.2 Foundations of Business Intelligence and Analytics). By simulating various scenarios and analyzing their potential outcomes, decision-makers can evaluate risks, identify opportunities, and develop robust strategies to achieve their goals. Utility companies leverage GIS-based predictive analysis to forecast electricity demand and optimize infrastructure investments, ensuring efficient resource allocation and strategic planning.
Geographic Context and Spatial Relationships
Understanding geographic context, or considering the impact of location on operations, is critical for making informed decisions, especially in urban planning, natural resource management, and emergency response. For instance, a forestry company may use a geographic information system to assess the location and distribution of timber resources, environmental constraints, and market demand. By incorporating geographic context into decision-making processes, organizations can mitigate risks, optimize resource allocation, and maximize opportunities for success.
Future Technology
Geographic Information Systems for Emergency Response Planning
The city of Los Angeles stands out for its innovative use of geographic information system technology in bolstering its emergency response planning processes, leveraging its functionalities at each stage with precision.11 The city not only optimizes local emergency response efforts but connects to global resources, such as best practices and disaster models. For instance, lessons from other earthquake-prone cities like Tokyo inform how Los Angeles prepares its evacuation routes and resource allocations.
A geographic information system integrates a plethora of datasets from various sources, encompassing population demographics, infrastructure locations, and emergency response resources into a centralized platform. This consolidation provides decision-makers with a holistic view of the city’s physical features (like roads, buildings, hospitals, and fire stations) as well as demographic data (population density, vulnerable communities) and infrastructure elements (utilities, communication network)—in other words, the city’s landscape—facilitating cross-disciplinary analysis and informed resource allocation to identify and address gaps in emergency response readiness.
By visualizing critical infrastructure data such as hospitals, fire stations, and evacuation routes, alongside demographic data, city officials communicate emergency plans to the public and coordinate response efforts across various agencies. A geographic information system enables detailed scenario planning by simulating complex disaster scenarios such as earthquakes and wildfires across the city’s vast and varied terrain. Decision-makers evaluate the potential impacts of each scenario, leveraging spatial data to assess resource requirements and communicate collaboratively. Notably, the city makes much of its mapping data available to residents of the LA area, and facilitates neighborhood use of its geographic data.
The result is comprehensive contingency plans that are tailored to mitigate risks and ensure a coordinated response. Through geographic information system platforms, stakeholders from different departments and agencies throughout the city can share information, exchange insights, and coordinate efforts. A geographic information system enables communication with international agencies when necessary, extending its reach into a global information system and allowing for the integration of global best practices and resources into local emergency response strategies.
Global Information System Infrastructure
A global information system infrastructure refers to the foundational framework of hardware, software, data storage, network, and cloud-based services that support global information system operations within an organization. It serves as the backbone for managing, analyzing, and visualizing spatial data to support decision-making, operational efficiency, and strategic planning on a global scale. This intricate network, much like the nervous system of a living organism, serves as the conduit for the flow of information that empowers global communication, economic exchange, and organizational advancement. A robust global information system infrastructure ensures reliability, scalability, and performance, allowing organizations to derive maximum value from collective information.
The global information system infrastructure is built on the interconnection of local, national, and international communication networks. This includes infrastructure like fiber optic cables, satellites, and communication towers that transmit data and connect hardware devices, software applications, and data storage systems across the globe. Reliable network infrastructure supports data sharing, communication, and collaboration within global information system environments. The network infrastructure encompasses network components such as routers, switches, firewalls, and wireless access points that facilitate data exchange and collaboration. Common network architectures include client-server, peer-to-peer, and cloud-based architectures.
Cloud computing services are accessible anywhere in the world with an internet connection, empowering employees, partners, and clients to connect and collaborate in real time. Cloud providers work hard to ensure availability of their services, meaning they are operational nearly 24/7, further enhancing communication reliability. Storage area networks are high-speed networks specifically designed to connect storage devices to servers. They allow for faster data access compared to traditional storage solutions.
Communication protocols are an established sets of rules that govern how devices communicate within the global information system infrastructure. They define how data are formatted, transmitted, and received, ensuring compatibility between different systems and software applications. Common protocols include TCP/IP (Transmission Control Protocol/Internet Protocol) and HTTP (hypertext transfer protocol) and FTP (File Transfer Protocol).
An interoperability standard is a guideline, protocol, or specification that enables different systems, technologies, or platforms to communicate, exchange data, or work together seamlessly. Security measures, such as encryption and access controls, safeguard global information system infrastructure from unauthorized access and breaches. Scalability and flexibility allow the systems to adapt to evolving needs and technological advancements, while maintenance and support ensure optimal performance through updates and troubleshooting.
Ethics in IS
Beyond the Essentials: Security and Safeguarding Data
Ethics in a global information system focuses on security and privacy. Interoperability standards ensure that different systems can work together effectively, protecting user privacy and maintaining trust. These standards provide a common framework for system compatibility and data exchange. Security measures, such as encryption and access controls, are vital for preventing unauthorized access and protecting data integrity. Together, these practices ensure that data are handled responsibly and ethically. Public health agencies often rely on global information system infrastructure to help track and analyze the spread of infectious diseases. Patient locations and demographics of reported cases allow for targeted interventions and resource allocation.
Security measures like encryption and access controls are critical to protect data and ensure public trust. Encryption scrambles data into an unreadable format, making it virtually impossible for unauthorized users to access confidential information even if intercepted. Access controls determine who can view, edit, or delete specific data within the system’s infrastructure. These controls can be implemented through user authentication and role-based access permissions. It’s important to note that different organizations maintain their own datasets, and protocols must account for this diversity in data management and security.
Hardware
The global information system infrastructure also relies on a variety of hardware and software components to function. Hardware includes computers, workstations, routers, and peripherals, such as cables, printers, and scanners, and encompasses servers, storage devices, and end-user devices necessary for processing and storing data. High-performance servers for data processing and storage are essential for handling the large volumes of data exchanged in global operations. These devices handle the computational demands of operations, enabling faster data processing, storage, and retrieval and enhancing the overall efficiency and performance of workflows. Compared to traditional IT hardware, global information systems need more specialized equipment. While standard servers and workstations are fine for general business tasks, global information system hardware is designed for high-performance computing and large data storage. For example, global information systems often uses fiber optic cables, which offer faster data transfer and less interference than traditional copper cables.
Software
Software components include operating systems, communication protocols, and applications and tools needed to create, edit, analyze, and share data effectively. A global database is akin to a vast library containing information from around the globe. For example, a global database might keep track of environmental data, like deforestation and pollution, which people across the world can use to make decisions. It serves as a central repository that can be accessed and analyzed on a global scale. Robust data storage solutions enable organizations to store and retrieve data efficiently, supporting real-time analysis, decision-making, and collaboration.
Global information system-specific applications—such as those for supply chain management and customer relationship management—allow organizations to navigate complexities, optimize processes, and deliver exceptional value across their supply chains, customer relationships, and strategic decision-making endeavors. A company’s supply chain management (SCM) software helps them manage goods and services from the point of origin to the point of consumption. It includes tools for planning, sourcing, production, inventory management, and logistics. This software provides real-time visibility into the supply chain, enabling organizations strategize effectively. For example, Starbucks uses a global information system to optimize its global coffee supply chain. By mapping coffee farms, tracking product quality, and assessing climate change risks, Starbucks ensures a reliable and sustainable supply of coffee beans. This technology helps the company improve efficiency, reduce costs, and support sustainable practices.12
A customer relationship management (CRM) software system encompasses the management of customer interactions throughout their life cycle, aiming to enhance satisfaction and foster loyalty. A CRM merges data from disparate sources like sales, marketing, and customer service into a centralized database. This integration empowers organizations to delve into customer behavior, tailor marketing initiatives, and refine service delivery. The benefits include heightened customer satisfaction and loyalty, increased retention rates, expanded cross-selling and upselling prospects, and enriched insights facilitating informed decision-making.
Designing and Implementing a Global Information System Infrastructure
Building a robust global information system infrastructure requires thorough planning and execution to align with an organization’s strategic goals and operational needs. Figure 11.5 shows the steps for designing and implementing a global GIS infrastructure.
Step 1: Understanding the Organization’s Needs
Start by conducting a thorough assessment of the organization’s specific requirements, considering factors such as size, geographic distribution, operational scope, and information needs. Decision-makers at Toyota, for example, would consider the company’s manufacturing, distribution, and sales operations across continents, with the goal of improving economies of scale and operational efficiency.
Step 2: Defining Clear Objectives
Establish SMART (specific, measurable, achievable, relevant, and time-bound) objectives for the global information system infrastructure that contribute to the organization’s business goals. For instance, SpaceX could aim to increase collaboration efficiency among international project teams by 30 percent within six months, with an anticipated result of a 15 percent reduction in spacecraft development time by the end of the fiscal year.
Step 3: Assessing Technology Needs
Conduct a comprehensive needs assessment of technology requirements A needs assessment is the gathering and analyzing of data to identify and evaluate the current state, areas for improvement, and interventions needed to get to a more improved state It should include the following:
- hardware and software needs
- network infrastructure and security considerations
- scalability and interoperability with existing systems
- ability to handle future growth in data volume and users
For example, in a needs assessment, consumer goods company Procter & Gamble would consider the technology requirements for accessing market trends and competitor analysis data in new markets. They would evaluate the necessary hardware and software to support data analysis, ensure their network infrastructure can securely handle the influx of data and users, and verify that their systems can scale and integrate with existing platforms. This needs assessment will help to tailor marketing strategies and optimize product portfolios.
Step 4: Selecting the Right Technologies
Based on the needs assessment, choose the most suitable technologies with cost, reliability, performance, and vendor support in mind. Explore options like cloud services, enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, and other relevant applications, such as business intelligence (BI) tools. For example, FedEx considered the cost, reliability, performance, and vendor support needed to optimize transportation routes and strategically locate warehouses, minimizing shipping distances and enhancing customer satisfaction.
Step 5: Designing the Infrastructure
In designing the infrastructure, carefully consider the following:
- network setup
- data storage and management strategies
- robust security measures
- comprehensive disaster recovery plan
- scalability, flexibility, and the ability of the design to support future growth
The planning team for the city of Los Angeles would consider this list in designing a global information system infrastructure that will use a geographic information system to visualize population density, land-use patterns, and transportation networks in order to inform urban development strategies.
Step 6: Phasing Implementation
The infrastructure should be implemented in phases. Start with a pilot project to test the infrastructure and use what is learned during the pilot to refine the system before a full rollout. Adding this step helps to correct any issues and fix any bugs in the system before full deployment. Make sure to develop clear documentation and communication plans and keep stakeholders informed. For example, the Federal Emergency Management Agency launched a pilot program as part of its implementation for decision-making and response during emergencies before rolling out the full program. The pilot program revealed ways to improve hazard mitigation plans, such as methods to use artificial intelligence and provide communities with customized disaster preparedness and response plans that meet citizens’ specific needs in a geographic area.
Step 7: Training and Ongoing Support
To ensure proficient use of the global infrastructure, it is necessary to train employees. This includes developing and implementing user manuals and help desks to address initial challenges. For example, Target has trained its employees to use a global information system to track customers’ locations in real time. With this information, employees bring orders to the front of a store just in time to place the order in a customer’s automobile as soon as they arrive at the store. Not only does this minimize the amount of time that customers must wait, it also ensures that perishables, such as frozen goods, do not spoil while customers are en route to pick up their orders.
Step 8: Continuous Monitoring and Maintenance
It is imperative to implement a regular monitoring plan to ensure optimal infrastructure performance. Schedule routine maintenance to keep the system up to date with the latest security patches and ensure smooth operation. Make sure any issues are promptly addressed to minimize downtime.
Step 9: Soliciting Feedback and Improvement
Actively solicit and implement user feedback to drive continuous improvement. This ensures the system’s infrastructure evolves to meet the organization’s ever-changing needs, optimizing service quality and efficiency.
Challenges of Managing a Global Information System Infrastructure
Managing a global information system infrastructure demands skilled navigation of various challenges, such as data interoperability and accuracy, security and privacy concerns, legal and regulatory compliance, infrastructure resilience, and disaster recovery mechanisms.
Data Interoperability and Accuracy
Ensuring data interoperability, accuracy, and compatibility across diverse systems and sources is a major challenge. The ability of diverse data systems or formats to exchange, integrate, and interpret data accurately and efficiently is considered data interoperability, and it often includes processes like data cleaning and standardization (see Chapter 2 Data Management and Information Systems Business Strategies). The accuracy of data is vital, and organizations may use a variety of software and data formats, making exchanging and integrating data difficult. Managing the system’s infrastructure across regions requires hardware and software platform compatibility. Optimization of the performance of global information system infrastructure is needed to ensure that it meets the needs of users and applications. This includes monitoring performance metrics, identifying bottlenecks, and implementing measures to improve performance, such as hardware upgrades or software optimizations.
Security and Privacy
From customer demographics to classified project locations, an organization’s global information system holds a wealth of sensitive information that needs protection. It is imperative to protect sensitive data from unauthorized access and breaches and ensure compliance with data sovereignty laws and intellectual property rights. Security tools such as encryption, firewalls, intrusion detection systems, and multi factor authentication are crucial in protecting this data.
Infrastructure Resilience
To ensure a global information system’s infrastructure remains resilient in facing a cyberattack, organizations must proactively prepare for the worst-case scenario and build systems that can weather the attack. By implementing robust cybersecurity measures and fortifying the physical infrastructure, such as servers, data centers, and networking equipment, from risks (such as natural disasters, power outages, theft), organizations can minimize downtime, protect data, and keep operations running smoothly.
Cost and Scalability
A global information system infrastructure is complex, involving a wide range of hardware, software, data, and networks that must work together seamlessly. Managing this complexity requires careful planning, coordination, and technical expertise to ensure all components are integrated and functioning properly. Other challenges with global information system infrastructure include cost and scalability. A global information system infrastructure involves investments in hardware, software, data, and networks, as well as ongoing maintenance and support costs. Balancing these costs with an organization’s budget and strategic goals is key to staying on track. From budgeting wisely to optimizing resource allocation, keeping a keen eye on the bottom line ensures the system’s infrastructure remains both effective and economical in the long run. Additionally, a global information system infrastructure needs to be scalable to accommodate changing needs and requirements. Anticipating future growth and capacity needs is important for staying ahead of the curve. From expanding storage capacity to accommodating increased data traffic, having the flexibility to scale a global information system infrastructure ensures that an organization is ready for whatever comes its way.
Building Versus Outsourcing Global Information Systems
The decision to build or outsource (or buy) a global information system is an important one in modern business operations. Imagine that a multinational e-commerce company is seeking to expand its online sales operations across different countries. The decision of whether to develop a custom system or to purchase a pre-built solution to manage its global operations can have far-reaching implications on the organization. It is important to assess the company’s existing information technology and information system infrastructures and identify which current or external systems can be integrated with a new global information system. This can help to reduce costs, improve efficiency, and avoid duplication of efforts. For example, a transportation system could be integrated with a global weather system to improve delivery planning, optimize resource allocation, and enhance customer satisfaction. By anticipating potential disruptions and making adjustments, companies can minimize delays and ensure timely deliveries.
As businesses navigate this decision-making process, they must carefully weigh various factors to determine the most suitable approach and to ensure alignment with organizational objectives. When considering building a system in-house, an organization should consider these questions:
- In addition to build costs, how much will integration, implementation, training, and ongoing maintenance cost?
- Can the company absorb the time it will take to build an in-house system, or are there time-to-market considerations that may become a competitive disadvantage?
- Does the business have adequate in-house expertise and resources to develop, implement, and maintain an in-house system?
- Are there intellectual property concerns that would be best protected by building a proprietary system?
Systems that are outsourced through a vendor or purchased outright require these considerations:
- How much value will the company derive from a vendor’s expertise and services to implement and maintain an outside system?
- Are the system’s preset features sufficient, and if not, to what extent can the system be tailored to meet specific needs?
- What reputation do potential vendors have in terms of reliability, maintenance services, and technical support?
- Will a purchased system be compatible with and integrate smoothly into existing company systems?
For any of the options, the business should consider these important questions:
- What are the year-over-year cost outlays of building versus purchasing or outsourcing?
- Does one option or the other offer an advantage in terms of future scalability requirements and the flexibility to adapt to changing business needs and technological advancements?
- Will the migration of data into the new system be a smoother and better transition with one option over the other?
- How easily will the system comply with data protection regulations, industry standards, and the security measures needed?
Footnotes
- 2Katie Rees, "What Are Tesla's Over-the-Air Updates?," MakeUseOf, October 21, 2023, https://www.makeuseof.com/what-are-tesla-over-the-air-updates/
- 3“Navigating Devastation: GIS Aids Hurricane Helene Response,” Esri ArcNews, Winter 2025, https://www.esri.com/about/newsroom/arcnews/navigating-devastation-gis-aids-hurricane-helene-response/
- 4Miriam Chandi, "How Does Netflix Use Technology to Improve Their Business?," Start Motion Media, September 23, 2024, https://www.startmotionmedia.com/how-does-netflix-use-technology-to-improve-their-business/
- 5CleanChain Editorial Team, "How Does Nike’s Supply Chain Work?," ADEC Innovations, May 12, 2020, https://www.adec-innovations.com/blogs/how-does-nikes-supply-chain-work/
- 6“Air Pollution in World: Real-Time Air Quality Index Visual Map,” The World Air Quality Index Project, accessed January 26, 2025, https://aqicn.org/map/world/
- 7Eyad Ghattasheh, “Managing Syrian Refugee Camps Using ArcGIS,” Esri ArcUser, Fall 2017, https://www.esri.com/about/newsroom/arcuser/managing-syrian-refugee-camps-using-arcgis
- 8Hassan Ali, "Toyota’s JIT and AI: A Powerful Combination for Supply Chain Optimization," LinkedIn, October 3, 2024, https://www.linkedin.com/pulse/toyotas-jit-ai-powerful-combination-supply-chain-optimization-ali-knoie/
- 9Maria Thomas, "How SpaceX is Transforming Project Management Practices," MPUG, https://mpug.com/how-spacex-transforming-project-management-practices/
- 10Jacquelyn Haas, Jeff McLeod, Rick Dezemplen, and Rodney Conger, "Using GIS in Strategic Planning and Execution at FedEx Express" (paper presented at ESRI 2010 International User Conference, Paper: 1520), https://proceedings.esri.com/library/userconf/proc10/uc/papers/pap_1520.pdf
- 11Ron Galperin, “Get Ready, Stay Prepared: A Guide to Emergency Planning in the City of Los Angeles,” L.A. Controller Ron Galperin, accessed January 7, 2025, https://storymaps.arcgis.com/stories/d32f5d0d03d64964be022b0de6c2b290
- 12"Starbucks Supply Chain Management: Optimizing Global Coffee Distribution Through Risk Mitigation and Sustainable Practices," SFK Inc., SKK Marine, SFK SecCon, July 19, 2024, https://sfkcorp.com/starbucks-supply-chain-management-optimizing-global-coffee-distribution-through-risk-mitigation-and-sustainable-practices/